Japan’s wholesale inflation accelerated in June as higher energy costs linked to the Middle East conflict and a weaker yen continued to push up business costs, according to Bank of Japan (BOJ) data.
The producer price index climbed 7.1% from a year earlier, exceeding the market forecast of 6.8% and quickening from the revised 6.6% increase recorded in May.
The stronger reading points to mounting inflationary pressures at the wholesale level as businesses grapple with higher input costs.
The BOJ also reported that Japan’s yen-based import price index surged 29.7% year-on-year in June, accelerating from a revised 26.1% increase in May.
The sharp rise in import prices reflects the combined impact of elevated energy prices and the continued weakness of the yen, which has made imported goods more expensive for Japanese businesses.
Reuters
